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CHAPTER TEN- MONOPOLY - Coggle Diagram

- - - - firm's demand at least as elastic as market demand- limits potential of monopoly power
      - only one firm- its demand curve is the market demand curve
    - - many firms- unlikely one will affect price significantly
      - power decreases as no. of firms increase
      - only a few firms account for the market sales-> highly concentrated
    - - firm's will be unable to profitably raise price if rivalry is aggressive
      - might compete aggressively- undercutting each others prices to capture more of the market
      - may colude with eachother
      - monopoly power may be smaller when firms compete- larger when they cooperate
  - - - patents, copyrights, licenses
      - economies of scale- may be to large-> natural monopoly may be more fitting
- - - - max price allowed based on expected return rate
      - key element- capital stock
    - - based on V.C